Heard out there on the virtual news............
Are WAMU shareholders filing a class action lawsuit for gross mismanagement of the company?
Well if they aren't, they should. However the fact that it has been taken over by the FDIC and sold to J.P, Morgan, Chase, they may not be able too. But I'm sure some lawyer will know?
Its the wrong question. Yes there was some mismanagment but WAMU was positioned to recover in time. However the FDIC moving in on Wamu (without Wamu management knowledge) and then turning around and selling of the cream to JP Morgan was an act of conspiracy and expedience leaving WM share holders out in the cold.
This act permitted three things. First, it permitted the FDIC to reduce its possible exposure that it could not meet because it is financially weaker than we think. Second, it facillitated JP Mogan getting what they have wanted for a long time a rock bottom prices (and getting all the good bits of Wamu while leaving other bits behind - among other things like share holders).
While both these on their own are enough to be conspiratorial they pale in comparison to the third point of which these both form an essential part.
The media failed us in the reporting of what really happened here. We are told that Wamu was bought out. BUT it was not. JP morgan did not buy Wamu from Wamu. It bought it from the FDIC after FDIC prematurely siezed it. And where did the money go (small though it was) that JP Mogan paid? Not to Wamu share holders thats for sure!
There is no simple coincidence that the federal government and Paulson were at this time trying to get their 700 billion bailout through congress, just 48 hours prior to this, with all its problems of 'No oversight' (actually the no oversight clause was actually written into the bill by Paulson et al!). It wasn't moving through congress fast enough and in danger of stalling. What could the administration do to get congress to accept their 700 billion solution???
The expedient and convenient collapse of another big bank should do the trick. Wamu was the bank of choice.... it was in the news ... JP morgan could shoulder the FDIC responsibilties in return for a great deal from them and be seen as a white knight (which they are not!)... and another bank failure (as contrieved as it would be) would convince congress to hurry up and sign the bail out. The feds CHOOSE to fail Wamu not on economic grounds but because it suited their purposes and with JP morgan they had the means to accomplish it with little out of pocket expenses. The other bank failures were actual failures... Wamu didn't fail ... it was strong armed by those who had the power and the will to abuse it for their own purposes. Wamu's failure was not the act of the 'free' market.
So the question should be is there going to be a class action suite for Wamu share holder against the federal government (and FDIC) for stepping in prematurely for purposes quite different than Bank failure (and possibly against JP Morgan for collusion and facilitation of this).
Just because its a conspiracy doesn't mean it is not real ... just means you may not have seen it happening.
I would encourage all to start looking closer at this travesty .. and maybe some law firm to consider what should be done to these political conspirators .
AI
